DENVER, July 15, 2026, 15:05 MDT
- Investors will exercise 2.36 million warrants at the lower $1.05 price and are putting in another $590,162 to pick up two new warrant series.
- The new shares make up 84% of SOBR Safe’s last reported total. Another 4.72 million shares could come in from the new warrants.
- Shares jumped 75.2% to $2.07 on Wednesday with volume hitting 173.3 million, roughly 62 times the number of shares seen on April 30.
SOBR Safe, Inc. NASDAQ:SOBR said after the close Wednesday it plans to raise about $3.1 million in gross proceeds from a repriced warrant exercise. The cash is big compared to its existing balance, but it will also push up the share count. The move looks like a bridge to help with a planned merger and to hit a Nasdaq deadline, not new money for its alcohol-monitoring unit, which shuts down this month.
SOBR stock had just closed at $2.07, up 75.2% for the day, and volume hit 173.3 million shares. There were 2.8066 million shares outstanding as of April 30, so trading churned through about 62 times the float. That doesn’t mean each share was new, but it shows the scale of speculation SOBR tapped.
SOBR Safe said at 4:05 p.m. EDT that investors will exercise 2,360,648 December warrants at $1.05 each, after cutting the exercise price from $1.30. For every old warrant, holders pay $0.125 for each of two new ones, giving out 4,721,296 Series E and Series F warrants with $1.30 strikes. H.C. Wainwright acts as placement agent. Closing is set for July 16, pending typical conditions.
| Financing component | Securities involved | Cash to SOBR Safe |
|---|---|---|
| Investors exercised existing warrants | 2,360,648 shares | $2.479 million |
| Investors bought new warrants | 4,721,296 warrants | $0.590 million |
| Total cash raised immediately | $3.069 million | |
| Future exercises if all new warrants used | Up to 4,721,296 shares | Up to $6.138 million |
Based on the April 30 share count and no other changes, issuing the securities right away would boost the number of common shares to around 5.17 million, up 84.1%. If both new warrant series are fully exercised, the share count tied to these instruments alone would jump to about 9.89 million, or 3.52 times the original amount. That’s the size of the warrant overhang — securities that could convert to common stock and dilute current holders.
Liquidity, not sales, is driving the deal terms. SOBR Safe said it had $2.11 million in cash at March 31, and used $2.59 million in operating activities in Q1. The company said its normalized cash burn is about $700,000 a month. The new gross proceeds cover around 4.4 months of burn at that pace, before placement fees, offering costs, and merger expenses. Management had already determined there was still substantial doubt about SOBR Safe’s ability to keep operating as a going concern.
| Financial reference | Reported amount | Comparison with $3.1 million gross raise |
|---|---|---|
| Cash at March 31 | $2.106 million | Raise is about 1.47x cash |
| First-quarter operating cash use | $2.591 million | Raise comes to 1.20x the quarter’s use |
| Stated normalized monthly burn | $0.700 million | That’s about 4.4 months |
| First-quarter revenue | $0.079 million | Raise is about 39x revenue |
| Planned annual cost reduction | $1.200 million | Cut works out to $0.100 million monthly |
The company aims to stop making SOBRcheck and SOBRsure devices, end its software-support deals, and give up its corporate-office lease by July 31. Management expects these cuts to save about $1.2 million a year, with about $50,000 in costs to implement. Compared to the last reported burn rate, the monthly saving is about 14%, but spending will likely shift again as the revenue side winds down.
The company is holding on to cash for the planned merger with Clean World Ventures. Owners of Clean World, which is private, would own about 98% of the new combined business, according to the April announcement. Closing the deal needs $5.5 million in committed financing before the merger, with $2 million earmarked for the SOBR business. The update on Wednesday didn’t say if the warrant proceeds count toward meeting that requirement. Back in April, SOBR CEO David Gandini said the merger would help “maximize and grow market value for SOBR shareholders.” Clean World CEO Roy DiBenerdini described it as a move to “strategically align capital, innovation, and shared purpose.” SOBR Safe, Inc.
Nasdaq gave SOBR Safe a deadline of September 15 to finish its combination and meet initial listing standards. The company got the extension after its shares closed below $1 for 30 straight business days. Shares rose Wednesday, boosting the price, but the exchange’s panel is looking for more than a single day’s move.
The financing still leaves core risks. If shares drop under the new warrants’ $1.30 exercise price, SOBR Safe might not get the full $6.14 million from future exercises. If shares stay above the strike, exercises and resales could put 4.72 million new shares on the market. A merger delay pushes up against the September 15 Nasdaq deadline.
Shareholders are looking at about $3.1 million gross versus the last $2.1 million cash on hand, swapping that for new shares worth 84% of the last reported total and a bigger future cut. Wednesday’s trading pop let SOBR Safe grab a shot at fresh funding. The question now is if that cash is enough to take the company through the merger without needing to recapitalize again.
